CORPORACION DURANGO, S.A.B. DE C.V.                                                                                 10.8116
INDIVIDUAL BALANCE SHEETS
AS OF DECEMBER 31, 2005 AND DECEMBER 31, 2006 (UNAUDITED)
EXPRESSED IN TERMS OF THE PURCHASING POWER OF MEXICAN PESOS
AS OF DECEMBER 31, 2006
(Stated in thousands of Pesos and Dollars)
                                                                              US$ DLLS.
                                                      December 31, Dec 31,     Dec 31,
                                                         2005        2006        2006

     ASSETS
CURRENT ASSETS:
  Cash and cash equivalents ........................$    303,065$     34,267       3,169
  Due from related parties .........................     100,914      48,399       4,477
  Taxes recoverable and other assets ...............      44,589      15,623       1,445
            Total current assets ...................     448,568      98,289       9,091
LONG-TERM RELATED PARTIES ..........................   9,011,346   1,563,866     144,647
INVESTMENT IN SUBSIDIARIES .........................   3,566,354  11,779,300   1,089,506
OTHER ASSETS, net ..................................      32,449      36,446       3,371
            Total  assets ..........................$ 13,058,717$ 13,477,901   1,246,615

     LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Bank loans and current portion of long-term debt .     154,203     150,670      13,936
  Interest payable .................................         241         485          45
  Trade accounts payable ...........................         905       3,801         352
  Accrued liabilities ..............................     216,197     208,010      19,240
            Total  current liabilities .............     371,546     362,966      33,572
LONG-TERM DEBT .....................................   5,866,230   5,493,731     508,133
LONG-TERM RELATED PARTIES ..........................   1,976,485   2,672,614     247,199
            Total long term liabilities ............   7,842,715   8,166,345     755,332
            Total  liabilities .....................   8,214,261   8,529,311     788,904
STOCKHOLDERS' EQUITY:
            Total stockholders' equity .............   4,844,456   4,948,590     457,711
            Total liabilities and stockholders' equi$ 13,058,717$ 13,477,901   1,246,615

               Exchange rate: $ 10.8116